XING/QXM I have spent a couple of hours trying to understand this one. If I understand it properly, the investment thesis is:
1. QXM's legacy business will be thrown out with the trash and its cash will be deployed in acquiring mines.
2. XING will seek a dual listing in HK.
3. That dual listing will give the entity a much higher valuation.
4. Owning resources in China is a way to gain hard assets in an expanding economy
5. The Chairman of XING, while a sly fox, is a very rich sly fox who knows how to get things done.
6. He knows the mining business, as the suceess of Real Gold Mining indicates.
7. There are worse things to do than to ride his coattails unless, of course, he pulls a dirty trick.
Is that about it?
Risks:
1. The merger doesn't go through
2. It does go through, but XING spends the cash unwisely, overpaying for mining assets.
3. The HK dual listing is not approved.
4. The Chairman takes XING private and turns out the lights. Minority shareholders can try to sue him in China, where his billions might allow him a certain amount of influence in court.
What did I miss?
